Loading
in Lynwood, CA
Both FHA and VA loans make homeownership possible in Lynwood with minimal upfront cash. The main difference is eligibility: FHA works for anyone who qualifies, while VA requires military service.
These government-backed programs share lower credit requirements than conventional loans. But they diverge sharply on down payment needs, ongoing costs, and approval flexibility.
FHA loans let you buy in Lynwood with just 3.5% down if your credit score hits 580. Below that, you need 10% down but can still qualify with a 500 score.
You'll pay an upfront mortgage insurance premium of 1.75% at closing, plus monthly premiums that last the life of most loans. Debt-to-income ratios can stretch to 50% with strong credit.
VA loans require zero down payment for eligible veterans and active military. You pay a one-time funding fee instead of mortgage insurance, and that fee drops with each subsequent VA loan you use.
Most lenders want 620 credit, though the VA itself sets no minimum. These loans have no monthly mortgage insurance, which saves $150-300 monthly compared to FHA on a typical Lynwood home.
The funding fee versus mortgage insurance split creates the biggest monthly payment gap. On a $500k Lynwood purchase, FHA costs roughly $240/month in insurance while VA has zero ongoing premiums.
FHA approves more credit profiles below 620, making it the backup when VA lenders reject borderline scores. But VA wins on appraisal flexibility since it doesn't enforce FHA's strict property condition standards.
Use VA if you have the eligibility certificate. The zero-down benefit matters less than eliminating lifetime mortgage insurance, which saves $50k-100k over 30 years on most Lynwood properties.
Choose FHA when your credit sits in the 580-619 range or you're buying a multi-family property VA won't finance. FHA also works for non-military buyers who can't access VA benefits at all.
No, you pick one loan type per purchase. If you qualify for VA, use it—the savings beat FHA every time.
FHA typically closes 2-3 days faster since VA appraisals require additional property inspections. Both take 30-40 days on average.
Yes, but the condo complex must appear on each program's approved list. VA has fewer approved buildings than FHA in Los Angeles County.
You can reuse VA benefits by selling your current VA-financed home or paying off that loan. Remaining entitlement may cover a second property.
VA allows sellers to pay all your costs; FHA caps seller credits at 6%. But VA's funding fee often exceeds FHA's upfront premium.